Enterprise software maker Oracle Corp. forecast earnings and revenue for the current quarter above market estimates after publishing positive second-quarter results on Thursday, helped by higher tech spending from companies that support hybrid work.

As the pandemic pushed more companies to move to hybrid work models, cloud technology spending has increased, benefiting Oracle and other companies such as Salesforce, Amazon.com Inc and Microsoft.

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Shares of the company rose nearly 10.4% to $98 in extended trading.

Oracle’s largest cloud services and license support unit, revenue rose to $7.55 billion in the second quarter, up from $7.11 billion a year ago. The company said it expects to grow between 6% and 8% in the third quarter.

CEO Safra Katz said during a conference call with analysts that Oracle has increased investment in data centers around the world, particularly in government-focused data centers.

About 75% of Oracle’s enterprise resource planning (ERP) customers haven’t moved to the cloud yet, said Third Bridge analyst Scott Kessler, and the company has a very good chance of moving them and increasing its ERP revenue.

The company expects earnings for the current quarter to be between $1.19 per share and $1.23 per share, ahead of Refinitiv IBES’s estimate of $1.16 per share. According to Reuters calculations, it expects revenue of $10.7 billion to $10.9 billion, up from estimates of $10.56 billion.

Oracle said it had paid for a ruling related to a dispute over the employment of former CEO Mark Hurd, which resulted in a third-quarter loss of $1.25 billion, compared to a profit of $2.44 billion a year earlier. year ago.

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On an adjusted basis, the company earned $1.21 per share on revenue of $10.36 billion. Analysts had expected earnings of $1.11 per share and revenue of $10.21 billion, according to data from Refinitiv IBES.